Section 990. Motor vehicle sales, leases, and rentals, repair and replacement parts, and maintenance materials; taxicabs

A. Generally. Sales, leases, and rentals of motor vehicles are not subject to the retail sales and use tax provided they are subject to the Virginia motor vehicle sales and use tax administered by the Department of Motor Vehicles and further provided that such tax has been paid. Any type of motor vehicle which is not subject to the motor vehicle sales and use tax shall be subject to the retail sales and use tax when sold, leased or rented.

B. Motor vehicles subject to the motor vehicle sales and use tax. Motor vehicles subject to the motor vehicle sales and use tax shall mean every vehicle or device described in § 58.1-2401 of the Code of Virginia, which includes vehicles that are self-propelled or designed for self-propulsion and every vehicle drawn by or designed to be drawn by a motor vehicle, including mobile homes and every device in, upon or by which, any person or property is, or can be, transported or drawn upon a highway, but excepting devices moved by human or animal power, devices used exclusively upon stationary rails or tracks and vehicles, other than mobile homes used in Virginia but not required to be licensed by the state.

C. Repair and replacement parts installed in motor vehicle sold, leased or rented. The retail sales and use tax does not apply to repair and replacement parts and accessories and oil and grease installed on a motor vehicle before or at the time of sale, lease or rental that are included in the sales price for measuring the motor vehicle sales and use tax or the retail sales and use tax. Such items may be purchased exempt from the tax by a dealer, lessor or renter of motor vehicles under a Resale Exemption Certificate, Form ST-10. Repair and replacement parts purchased for installation on motor vehicles not held for sale, lease, or rental are subject to the tax. Parts installed on vehicles not used exclusively for demonstrations are similarly subject to the tax. (For repairs of customer-owned vehicles, see 23VAC10-210-3050.)

D. Maintenance materials used to prepare motor vehicles for sale, lease or rental. Maintenance materials such as soaps, cleaners, etc., used on motor vehicles prior to or in preparation for sale, lease or rental are subject to the retail sales and use tax.

E. Taxicab operations. Repair parts and tires for use on taxicabs may be purchased exclusive of the retail sales and use tax by taxicab operators. Accessories, maintenance materials, and all other tangible personal property purchased by a taxicab operator are subject to the retail sales and use tax.

Historical Notes

Derived from VR630-10-67; revised July 1969; January 1, 1979; amended, eff. January 1, 1985.

Statutory Authority

§§ 58.1-203 and 58.1-609.1(2) of the Code of Virginia.